These items are taken from the financial statements of marigold corp. at december 31, 2017. buildings $88,872 accounts receivable 10,584 prepaid insurance 2,688 cash 9,946 equipment 69,216 land 51,408 insurance expense 655 depreciation expense 4,452 interest expense 2,184 common stock 50,400 retained earnings (january 1, 2017) 33,600 accumulated depreciation—buildings 38,304 accounts payable 7,980 notes payable 78,624 accumulated depreciation—equipment 15,725 interest payable 3,024 service revenue 12,348prepare a classified balance sheet. assume that $13,600 of the note payable will be paid in 2018.

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's